US and China Extend Tariff Truce

Stock futures in the United States saw a slight uptick early Tuesday following the announcement that the US has extended its suspension of tariffs on Chinese imports by an additional 90 days. This development has injected a dose of optimism into the markets, with investors closely monitoring the upcoming July inflation report.

Market Reaction

By 4:15 am ET, the Dow Jones futures had climbed by 0.19%, while the Nasdaq 100 and the S&P 500 recorded gains of 0.11% and 0.16%, respectively. The euro remained stable against the dollar, trading at 1.16192 at 4:26 am ET.

Inflation Concerns Loom

Amidst these developments, there's growing concern among investors that the consumer price index may continue to deviate from the Federal Reserve's 2% target, potentially delaying anticipated interest rate cuts. The financial community is keenly awaiting the July inflation data to gauge the economy's direction.